Marketers see today’s consumers as web-savvy, mobile-enabled data sifters who pounce on whichever brand or store offers the best deal. Brand loyalty, the thinking goes, is vanishing.
In response, companies have ramped up their messaging, expecting that the more interaction and information they provide, the better the chances of holding on to these increasingly distracted and disloyal customers.
But for many consumers, the rising volume of marketing messages isn’t empowering—it’s overwhelming. Rather than pulling customers into the fold, marketers are pushing them away with relentless and ill-conceived efforts to engage.
That’s a key finding of Corporate Executive Board’s multiple surveys of more than 7,000 consumers and interviews with hundreds of marketing executives and other experts around the world. Our study bored in on what makes consumers “sticky”—that is, likely to follow through on an intended purchase, buy the product repeatedly, and recommend it to others.
We looked at the impact on stickiness of more than 40 variables, including price, customers’ perceptions of a brand, and how often consumers interacted with the brand. The single biggest driver of stickiness, by far, was “decision simplicity”—the ease with which consumers can gather trustworthy information about a product and confidently and efficiently weigh their purchase options. What consumers want from marketers is, simply, simplicity.
Consider the marketing activities of two
digital camera brands. Brand A’s search engine strategy is to pick up
any consumers who are searching common digital camera terms and direct
them to the company website.
There they find extensive technical and
feature information and 360-degree rotatable product photos, all
organized and sortable by model. In stores, shelf labels list key
technical attributes, such as megapixel rating and memory, and provide a
QR code that takes consumers to a mobile version of the brand’s
website, where they can dig more deeply into product specifications.
Brand
B’s search engine strategy is to first understand the consumer’s intent
and where in the search process she is likely to be. Why does she want a
camera? Is she just starting to look, or is she ready to buy? The
company guides those in the early stages of investigation to third-party
review sites (where its cameras get good marks) and directs consumers
who are actively shopping to its own website.
User reviews and ratings
are front and center there, and a navigation tool lets consumers quickly
find reviews that are relevant to their intended use of the camera
(family and vacation photography, nature photography, sports
photography, and so on). In stores, Brand B frames technical features in
nontechnical terms.
Instead of emphasizing megapixels and memory, for
example, it says how many high-resolution photos fit on its memory card.
The QR code on shelf displays leads to a simple app that simulates one
of the camera’s key differentiators, a photo-editing feature.
The
highly detailed information Brand A provides at every step on the
purchase path may instruct the consumer about a given camera’s
capabilities, but it does little to facilitate an easy decision. Brand B
simplifies decision making by offering trustworthy information tailored
to the consumer’s individual needs, thus helping her traverse the
purchase path quickly and confidently.
Our research shows that customers
considering both brands are likely to be dramatically more “sticky”
toward Brand B.
Making Decisions Simple
For a marketing organization, what does it take to acquire sticky consumers?
Our
study found that the best tool for measuring consumer-engagement
efforts is the “decision simplicity index,” a gauge of how easy it is
for consumers to gather and understand (or navigate) information about a brand, how much they can trust the information they find, and how readily they can weigh
their options.
The easier a brand makes the purchase-decision journey,
the higher its decision-simplicity score. Brands that scored in the top
quarter in our study were 86% more likely than those in the bottom
quarter to be purchased by the consumers considering them. They were 9%
more likely to be repurchased and 115% more likely to be recommended to
others.
Shifting the orientation
toward decision simplicity and helping consumers confidently complete
the purchase journey is a profound change, one that typically requires
marketers to flex new muscles and rethink how they craft their
communications.
Some practical lessons can be drawn from brands that are
leading the way. The processes of aiding navigation, building trust,
and making it easier to weigh options often happen simultaneously, or at
least aren’t strictly linear, but for clarity we’ll discuss them
separately below.
Patrick Spenner and Karen Freeman are managing directors at Corporate Executive Board.
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